Cryptocurrency forks of different types now occur on a regular basis. Even bitcoin has undergone several unique iterations and branches this manner. Among the greatest and most talked bitcoin forks happened late in 2017.
Bitcoin gold was a tricky fork of the first open source cryptocurrency that happened on October 24, 2017. While challenging forks happen for any range of reasons — such as for the purposes of climbing as a cryptocurrency client base develops, or due to developer battle and differences of intentions — bitcoin gold stated goal is to”make bitcoin decentralized again.”
On the surface, the notion of”making best Digital assets store decentralized again” might appear counterintuitive. Bitcoin, the same as the rest of the cryptocurrencies, was made to be decentralized currently; it isn’t connected with any central bank, especially nation, or body.
Among the more important problems with bitcoin which prompted the evolution of bitcoin gold, however, wasn’t linked to the issue of fundamental issuance in any way. Instead, it had to do with the mining procedure. Bitcoin gold programmers thought that by embracing a new algorithm to its mining procedure (in this instance, a so-called proof-of-work algorithm named Equihash), the new branch of this planet’s hottest cryptocurrency by market cap wouldn’t disproportionally prefer important mining operations.
Democratizing the Mining Process
Bitcoin mining is still a rewarding but resource-intensive procedure. Even the most lucrative mining ventures tend to be the ones that pool together a high number of mining channels, all which requires expensive, particular gear. (See more: How Does Bitcoin Mining Work? )
Individuals trying to mine to get bitcoin by themselves either need to commit a massive sum of time and money into making their own replacements, or they have passed in the procedure, because their computers cannot compete with the expert rig systems.
Among the most important aims of bitcoin gold is to alter the algorithm where the cryptocurrency itself is mined, which means that the mining process can’t be run quicker on technical gear than it could on conventional computer systems.
Bitcoin gold wasn’t the first major challenging fork of bitcoin. Bitcoin money forked off by the principal cryptocurrency at August of 2017.
In 2018, bitcoin is expecting several extra challenging pliers, prompting some to speculate that there might be diminishing returns concerning investor attention as more offshoots of bitcoin get to the marketplace. (See more: Bitcoin vs. Bitcoin Cash: What’s the Difference? )
Distribution, Protection, Transparency
Aside from the objective of”re-decentralizing” bitcoin, bitcoin gold programmers were focused on topics regarding supply, security, and transparency. “Hard forking bitcoin’s blockchain fairly and efficiently distributes a new digital asset immediately to people all over the world who have interest in cryptocoins,” that the bitcoin gold site states.
In the realm of virtual currencies, dangers from hackers and other malicious entities are always a concern. Because of this, bitcoin gold required extra security and protective measures by the time of its launching, in a bid to help protect its clients’ accounts and coins. These include replay protection and unique wallet addresses. (See also: Can Bitcoin Be Hacked? )
The fact that bitcoin gold is”a completely free open-source program project that’s made by volunteer programmers and backed by a fast growing community of bitcoin fans that stretches across the world” is also a draw for potential customers.
Bitcoin Gold On Exchanges
For all cryptocurrencies, one of the major factors which helps to determine both short-term and long-term success is its availability on cryptocurrency exchanges. Users must be able to access the cryptocurrency on exchanges in order to make transactions.
According to the bitcoin gold website, as of March 2018, the cryptocurrency was trading live on Bithumb, Bitfinex, Binance, Bittrex, HitBTC, Uphold, YoBit, Gate.io, Changelly, Shapeshift, BitBay, Abucoins, Change Now, Evercoin, Tdax, Bitsane, Bitstarex, QuadrigaCX, Cex.io, Okex, Anybits, BestRate, Bitmarket, Indacoin, CoinSwitch, and Unocoin.
There are additional exchanges slated to offer bitcoin gold in the near future as well. The cryptocurrency is also available through a number of wallet services, including Trezor Wallet, Ledger Wallet, Exodus, Coinomi, Bitpie, Guarda, Freewallet, BTGWallet, and Kasse. According to the website, the cryptocurrency has been listed on 46 markets and 26 exchanges as of January, 2018.
Launch and Controversy
The developers of bitcoin gold used what is called “post-mine” after the launch. This was the retroactive mining of 100,000 coins after the fork already took place. The way that this happened was through the rapid mining of about 8,000 blocks, the results of which were set aside as an “endowment” of sorts, to be used to grow and maintain the broader bitcoin gold network.
About 5% of those 100,000 coins were set aside for each of the six primary team members as a bonus. At the time of the launch, all bitcoin owners received bitcoin gold coins at the rate of one bitcoin gold token per one bitcoin token.
Coinbase, one of the largest cryptocurrency exchanges in the world, was notably skeptical of bitcoin gold at launch time. Coinbase representatives stated that the exchange”can’t encourage bitcoin gold since its programmers haven’t made the code available to people for inspection. This is a significant security threat.” (See also: Coinbase Hit with 2 Lawsuits: Accused of Insider Bitcoin Cash Trading.)
As of March 4, 2018, bitcoin gold has 253 reachable nodes. The highest concentration of nodes is in Germany (46 nodes), with the next-highest levels being the United States (38), France (37), and Russia (18).
In February 2018, bitcoin gold launched the bitcoin gold insight explorer, calling it a”fully operational bitcoin gold penetration instance and net application service introducing the Insight UI and Insight API.”
Like most cryptocurrencies, bitcoin gold has had its share of detractors and controversies. Just days after the launch, miners accused one of the developers of bitcoin gold of having added in a 0.5% mining fee that was hidden from the mining community.
The Future of Bitcoin Gold
According to the bitcoin gold website, the cryptocurrency maintains ambitious plans for expansion into the future. In the first quarter of 2018, for instance, the website says its goals including”open source libraries integration” with BitcoinJS, BitcoinJ, and CoPay, as well as”academic and college cooperation” and”layout and rebranding,” including a refreshed website.
In the second quarter of 2018, the digital currency aims to integrate a lightning network and decentralized mining through P2Pool. There is also a plan to integrate a debit card program and other payment systems integrations.
By the end of 2018, the cryptocurrency aims to develop”sidechains and cross-chain nuclear swaps” as well as a number of meet-ups and developer conferences, university outreach, and more. Looking ahead to 2019, the cryptocurrency has its sights on private transactions and scholarship or research support.
Over the longer term, bitcoin gold will conduct research on smart contracts and blockchain democracy, as well as develop a decentralized fiat-crypto brokerage network. (See also: How Did Bitcoin Gold Prices Perform in 2017? )
Bitcoin gold developers are conscious of the connections between this cryptocurrency, its parent bitcoin, and the broader digital currency world. As such, they indicate that”the center enhancements we are working on are of fantastic interest from the wider bitcoin and crypto worlds, but not only for bitcoin gold” They said some of these unilaterally applicable improvements may include scalable ways to address hard forks,”intelligent voting mechanics,” and decentralized decision-making for the development of the digital currency.